Dr. Wilson Prichard, Chair of the Local Government Revenue Initiative (LoGRI), and Executive Director of the International Centre for Tax and Development (ICTD), participated in a strategic planning workshop in Addis Ababa, Ethiopia. This two-day event, held in partnership with the city’s Mayor and City Council, was part of the African Mayoral Leadership Initiative (AMALI), a program dedicated to empowering African city leaders to drive transformative urban development.
Event Highlights
The African Mayoral Leadership Initiative (AMALI)
AMALI is a comprehensive mentorship initiative designed to enhance leadership capacity among city leaders across Africa. The 2024 cohort, introduced in January, comprises 15 leaders from nine African countries, guided by experienced coaches, including former government and city officials. The Addis Ababa workshop focused on refining revenue mobilization strategies, particularly through property taxation, with the ultimate goal of enhancing urban governance and public service delivery.
Workshop Overview
Around 70 senior leaders from the Addis Ababa Administration, including Mayor Adenech Abebe and Deputy Mayor Jemallu Jenber Bekele, participated in the workshop. The discussions revolved around strategies to strengthen revenue mobilization, anchored in Mayor Abebe’s governance and transformation agenda, with support from Big Win Philanthropy and AMALI.
Strategic Priorities Identified
- Expanding the Tax Base: Targeting high-priority firms and individuals within the informal sector.
- Graduating Larger Firms: Transitioning firms from presumptive tax regimes to full taxpayer status.
- Enhancing Property and Rental Income Taxes: Broadening the scope and efficiency of house-related taxation.
- Digitalizing Tax Administration: Introducing electronic tax registers and improving digital processes for medium-sized businesses.
- Strengthening Non-Tax Revenues: Improving municipal service charges and land administration.
Opportunities for Collaboration
Dr. Prichard emphasized potential areas where LoGRI could support Addis Ababa’s revenue mobilization efforts, including:
- Conducting pilot surveys to identify rental properties and their approximate values, addressing gaps in tax coverage.
- Enhancing property tax systems through consistent valuation methodologies and property mapping.
- Implementing innovative strategies such as incentivized receipt issuance through lottery and audit programs.
- Leveraging property ownership data to identify affluent taxpayers and cross-referencing with personal income tax records.
Addressing Systemic Challenges
The workshop also highlighted challenges in identifying informal businesses and non-compliant taxpayers, underscoring the need for targeted strategies. Dr. Prichard drew on successful examples from other countries, such as Uganda, to propose scalable solutions for Addis Ababa’s unique context.
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